11/6/2023

speaker
Operator
Conference Call Operator

Greetings, and welcome to the DocGo third quarter 2023 earnings conference call. At this time, all participants are in listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and then zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mike Cole, Director of Investor Relations. Thank you, sir. Please go ahead.

speaker
Mike Cole
Director of Investor Relations

Thank you, operator. Before turning the call over to management, I would like to make the following remarks concerning forward-looking statements. All statements made in this conference call, other than statements of historical fact, are forward-looking statements. The words may, will, plan, potential, could, goal, outlook, design, anticipate, aim, believe, estimate, expect, intend, guidance, confidence, target, project, and other similar expressions may be used to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance, and we cannot assure you that we will achieve or realize our plans, intentions, outcomes, results, or expectations. Forward-looking statements are inherently subject to substantial risks, uncertainties, and assumptions, many of which are beyond our control and may cause our actual results or outcomes or the timing of results or outcomes to differ materially from those contained in our forward-looking statements. These risks, uncertainties, and assumptions include but are not limited to those discussed in our risk factors and elsewhere in DOCCO's annual report on Form 10-K, quarterly reports on Form 10-Q, and other reports and statements filed by DOCCO with the FCC to which your attention is directed. Actual outcomes and results or the timing of results or outcomes may differ materially from what is expressed or implied by these forward-looking statements. In addition, today's call contains references to non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided directly as part of this call or included in our earnings release, which is posted on our website, dot go dot com, as well as filed with the Securities and Exchange Commission. The information contained in this call is accurate as of only the date discussed. Investors should not assume that statements will remain relevant and operative at a later time. We undertake no obligation to update any information discussed in this call to reflect events or circumstances after the date of this call or to reflect new information or the occurrence of unanticipated events, except as to the extent required by law. At this time, it is now my pleasure to turn the call over to Mr. Lee Bienstock, CEO of DOTCO. Lee, please go ahead.

speaker
Lee Bienstock
CEO of DOTCO

Thank you, Mike, and thank you all for joining us today. The third quarter marked our strongest growth since inception. and I'm extremely proud of the focus our team has brought to expanding our suite of services, our operational execution, and our financial performance. Both during the quarter and subsequent to quarter end, we continue to expand with our current customers while also signing new customers and winning RFPs. Most importantly, our team continues to strive to increase access to care for those who need it most. During the third quarter, we surpassed 7.5 million total patient interactions since inception, while leveraging a workforce that has now grown to over 6,000, more than double since I joined the company. Our services are in strong demand across the board. And as a result, we are increasing our full year 2023 revenue guidance to 615 to 625 million, up from 540 to $550 million. And we are increasing our full year 2023 adjusted EBITDA guidance to 50 to 55 million, up from 48 to 53 million. While our migrant work has received much of the media attention in Q3, it barely scratches the surface of what DOTCO accomplished last quarter. To give a sense of the full picture, in Q3 alone, DOTCO transported over 158,000 patients Our patient engagement team conducted outreach to over 50,000 patients. We provided RPM, VCM, and CIED monitoring for over 46,000 patients and increased our staffing headcount by over 26% during the quarter due to increased demand for our services. We also increased our clinical capabilities to close over 30 different care gaps in patients' homes, including bone density measurements, colon cancer screenings, diabetic retinal screenings, and annual wellness visits. DOTCO is bringing care to patients where and when they need it, and we are gratified to see that many of our customers recognize the value of our services and routinely expand our assignments. I'm excited by all our efforts to serve patients with our insurance partners, government and municipal population health programs, and hospital system customers. I'd like to share our impact, progress, and future opportunities across all three of these key areas. First, with our insurance partners and at-risk provider groups, the market opportunity with major insurance companies and value-based care partners, like the deals we've signed with healthcare partners, Emblem Health, and others, is one area where we have made great progress. We entered this space with pilot programs late last year, and the majority of those partnerships we've launched have expanded over the past six months. driving more expansive commercial rollouts. Last quarter, we announced that we expected to be assigned 73,000 patients to close care gaps and provide primary care services under these agreements with four payers. We have already been assigned 59,000 of these patients and have expanded our clinical offerings to encompass a wide range of primary care services, including annual wellness visits for Medicare members and pediatric checkups, including childhood vaccinations and nutritional counseling Medicaid members. We expect strong growth in the number of patients assigned and view this as a significant opportunity for DACO with years of growth potential ahead. In our population health programs, our work with migrant related services has continued to grow substantially during the quarter and we've launched four new sites in the last six weeks alone. We expect to continue to work closely with our partners at the city and to provide asylum seekers with the medical care, behavioral health care, basic necessities, and support services to help transition them out of the program and into a position of self-sustainability as quickly as possible. Contrary to early negative media, we recently shared that the contract has been registered and payments have commenced. In addition, a recent independent report by the New York State Office of Temporary and Disability Assistance found that our programs were working as planned and asylee needs are being met. We believe this report accurately reflects DACO's efforts and program quality, as well as our commitment, diligence, and dedication to helping to improve the health, safety, and overall well-being of all those in our care. Submissions for municipal and corporate RFPs remains a core focus and a material opportunity for the company. We recently learned that we were not awarded a large federal border patrol RFP, but we have many other opportunities we are excited about. Going forward, we intend to speak about this channel as a portfolio of opportunities without as much granular detail on any one specific RFP. We intend to pursue mobile health, both medical and behavioral health, medical transportation and municipal opportunities both within our current footprint and with an eye towards expanding into new states, all aligned with our growing skill set. For our partners with hospital systems and medical transportation, we are also seeing substantial new contract wins. To share a few, we recently announced our contract with Mainline Health Systems in the Northeast, which we expect to represent approximately $23.5 million in revenue potential over three years. And we have plans to further grow this relationship in early 2024. Additionally, we want a large medical transportation contract valued at $34 million over the next five years in the UK. And our large New York health and hospitals contract we announced early this year is now fully rolled out as planned. We are very pleased with how this segment is performing and expect to see continued strong organic growth in the coming quarters. At this time, I'll hand it over to Norm to cover the financials. Norm, please go ahead.

Disclaimer

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